IPR for Finance Professionals
|
|
- Martin Carpenter
- 6 years ago
- Views:
Transcription
1 1 Important terms IPR for Finance Professionals Rajesh Haldipur Associate Director Tax and Regulatory Services PricewaterhouseCoopers Pvt Ltd PwC House, 18/A, Guru Nanak Road (Outside Bandra Rly Stn (West)) Bandra, Mumbai D: M: Intangible Assets Long-lived assets without physical properties 2. Intellectual Capital Collection of long-lived Intangible Assets comprising "know-how" and "know-why". Subset of Intangible Assets 3. Intellectual Property Intangible Assets that enjoy Protection of Law. Subset of Intellectual Capital. Patents (not discussed in this note) Copyrights Economic Rights Reproduction Rights Rights to distribute Rights of Public Performance Righs of Broadcasting/ Communication to Public Rights of Translation and Adaptations Moral Rights Right to be recognised as Author/ Creator Rights to Integrity of Work Major Concepts Life of Copyright Concept of Fair Use Trademarks Can be Words, letters, abbreviations, drawings, 3D signs, packaging shape and design, colors / color combinations TM must be distinctive Must be Protected. Must not be deceptive Not be contrary to Public Order or Morality Not identical to or confusingly similar to existing trademark Must be distinctive Sign to identify goods Includes Brands Also, Collective Marks and Certification Marks Trade Secrets Others
2 Related Rights, for Protection of Performers Producers of Sound Recordings Broadcasting Organisations Fair use Doctrine applies Service Marks Industrial Designs New Plant Varieties Breeders' Rights protected Protection against unfair competition Protection against false allegations Protection against acts that create confusion Protection against acts that might mislead the public Disclosure or use by others of secret/ confidential information Acts that damage the goodwill or business reputation Protection to genetically engineered bacteria etc. Protection to Products of Traditional Knowledge 4. Freedom to Operate Ability to enter/ compete in a business/ segment. Others' IP tends to reduce it; own IP tends to expand it. 2 Why bother? 1. Because Intangibles are an increasing proportion of enterprise value (in some cases, as high as 80%) 2. Thus, intimately related to issues like share price, wealth creation & value realization 3. Because increasingly, IC/IP/IA are forming primary justification of even big-ticket acquisitions/ mergers 4. Because it is important to know, and inventorize IC owned by company as a First Step to realizing value 5. Costs of maintaining IP portfolios are becoming significant, hence there is need to focus on value 3 Important Aspects 1. Valuation of IP Why conduct IP valuation? Objectives of Valuation To estimate a value (as specifically defined) for particular IP To measure lost profits or other measure of economic damages to IP To estimate a fair license agreement royalty rate between independent arms' length parties To conclude ALP for inter-company or cross-border transfer of IP To estimate Remaining Useful Life of IP To opine on fairness of IP sale, transfer or financing transaction from a financial perspective Reasons to Conduct Valuation Exercise
3 Transaction Pricing & Structuring Arm's Length Sale of individual IP or of portfolio of IP Assets Pricing Arm's Length License of individual IP or of portfolio of IP Assets Calculating Exchange Ratio between 2 Owners for respective IP portfolios Valuing Equity Allocations in JV/ Partnership when >=1 party contributes IP Valuing Asset Distributions in Liquidation of Firm/JV when >=1 party receives IP Assets Financing Collateralization & Securitization Using IP as Collateral in CF-based or asset-based debt financing Sale/ License-back Financing of Commercial IP Tax Planning/ Compliance Forming IP Holding Co; Inter-co. IP Licenses to assessee-operating companies ALP for cross-border transactions (Transfer Pricing) Tax basis purchase price allocation among acquired tangible & intangible assets in acquisition Amortizing IP - tax deductions for Donated IP - charitable contribution deduction allowances Regulatory Compliance & Corporate Governance Estimating FMV of IP sale, license or other transfer between for-profit and not-for-profit entity Custodial inventory of owned and licensed IP Assessing adequacy of Insurance coverage for owned and licensed IP Bankruptcy & Reorganization Using IP as collateral for secured creditor financing Using IP as collateral for debtor-in-possession secured financing Using IP in assessing debtor-co's solvency, or insolvency w.r.t. fraudulent transfers and preference actions Estimating impact of IP on the bankrupt entity's re-organization plan Evaluating opportunity to spin off Sale or Licensing of IP to generate cash Financial Accounting and Fair Value Reporting Acquisition Purchase Accounting - allocation between acquired tangible & intangible assets Goodwill and IPR impairment testing Post-bankruptcy "fresh start" accounting for intangible assets Forensic Analysis and Dispute Resolution Infringement claims - valuing lost IP profits, royalty rate or other economic damage analysis Breach of contract/ license/ non-compete/ non-disclosure agreement damage claims - valuing lost IP profits, royalty rate or other economic damage analysis Strategic Planning and Management Information Forming IP Joint Ventures, Joint Development, Joint Commercialization Agreements Negotiating outward/ inward IP use, development, commercialization or exploitation agreements Identifying & negotiating IP license, spin-off, JV or other commercialization opportunity Caveats
4 Objective determines valuation & drives approach - Never lose sight of it Value in eyes of buyer may be completely different from value for seller Generally Accepted Valuation Approaches Cost Approach Reproduction cost new Total cost, at current prices, to develop an exact duplicate of the IP Replacement cost new Total cost, at current prices, to develop an asset having same functionality/ utility as the IP. Roughly calculated as Reproduction Cost New Less Curable Functional Obsolescence. Other cost approaches Trended historical cost (inflation-indexed) Cost avoidance attributable to IP Cost in all cost approaches includes: Direct Costs Indirect Costs IP developer's profit on investment in above two Opportunity cost/ entrepreneurial incentive IP Value can be calculated as Replacement cost new Less Physical Deterioration Less Economic Obsolescence Less Incurable Functional Obsolescence Cost needs to be adjusted for: Physical deterioration Functional obsolescence Economic obsolescence (Remaining Useful Life) Market Approach * Usually the first approach used, unless objective suggests another approach. * Market is considered to provide best indicator of value. Comparable Uncontrolled Transaction (CUT) Steps Data Sources RoyaltySource ( RoyaltyStat ( Royalty Connection ( ktmine ( Licensing Economics Review (monthly newsletter) License Royalty Rates (Aspen - book published annually) Royalty Rates for Trademarks & Copyrights (annually published book - Intellectual Property Research Associates) Royalty Rates for Pharmaceuticals & Biotechnology (annually published book - Intellectual Property Research Associates) Royalty Rates for Technology (annually published book - Intellectual Property Research Associates) Comparable Profit Margin (CPM) Steps Data Sources for company profit margins: FactSet Research Systems - FactSet
5 Hoover's Company Records - Hoover's, Inc. Morningstar Equity Research - Morningstar, Inc. CapitalIQ - Standard & Poor's Thomson ONE Analytics - Thomson Reuters In India: Capitaline, Prowess Income Approach NPV of future income streams from owning/ operating IP. Three principal components: 1. Estimate of RUL (Remaining Useful Life) 2. Estimate IP-related income cash flows over RUL 3. Estimate of appropriate Capitalization Rate (Required Rate) Income Measures a. Gross/ Net Revenues b. Gross income (or profit) c. Net operating income d. Net PBT e. Net PAT f. Operating CF g. Net CF h. Incremental income i. Differential income j. Royalty income k. Excess earnings income etc.etc. Methods that quantify/ estimate: 1. Incremental level of IP income (commonly EBIT) 2. Relief from hypothetical license royalty payment 3. Residual measure of IP income 4. Profit split between other assets and the IP 5. Comparative income (usually EBIT) a. before and after IP development; or b. industry average income levels c. listed company income levels (called CPM) Estimating RUL Usually affected by following considerations: 1. Legal Factors 2. Contractual Factors 3. Functional Factors 4. Technological Factors 5. Economic Factors 6. Analytical Factors Valuation "Synthesis" & Conclusions Procedures Must consider this following Question: Does the selected approach accomplish the analyst's assignment? Does it yield a * Defined Value * Transaction Price * 3rd party License Rate * Inter-co Transfer Price * Economic Damages Estimate * IP Bundle Exchange Ratio
6 * Opinion on fairness of Transaction Price * etc. etc. 5. Accounting and Reporting of IPR Standards & Pronouncements Indian Old AS 8 (Accounting for R&D) AS 26 (part of broader bucket called Intangible Assets) Acquisition cost becomes value of IPR if... Generally comprises: amounts expended by original developer + negotiated premium which is NPV of expected future profits of new owner 3 conditions satisfied: identifiability of asset, future economic benefits and reliably measurable cost Accounting rules depend on stage In research phase, all expenses fully written off In development phase Recognize as asset if Asset can be developed into saleable product Co intends to sell/ use the product Co has ability to sell the product Expected benefits can be measured reliably Else, expense fully Amortize depreciable amount over best estimate of RUL, which should not be >10 years fromd ate asset available for use. Amortization charge to be expensed in each period Residual value at end of RUL should be 0 unless it has active market at end of useful life or a third party has committed to buy it after the period If asset acquired legally, then RUL can exceed legal limit if legal right is renewable Amortization period and method to be reviewed every year, and changed if required Profit/Loss on dsposal of an IA to be disclosed as Income or Expense in P/L A/c Disclosures for each class of IAs distinguished between internally developed and other IAs Useful lives or amortization rates used Amortization methods used Gross carrying amount and accumulated (amortization+impairment charges) Reconciliation of opening and closing carrying amount Showing additions from internal development/ amalgamation retirements and disposals impairment losses reversed if any
7 amortization recognized during period other changes in carrying amount during period If IA amortized over >10 years, reason for same Description, carrying amount and amortization of any IA that is material to enterprise as a whole R&D expenditure recognized during the year IAS/IFRS Old SSAP 22: Accounting for Goodwill IAS 38 Acquisition cost becomes value of IPR if... Generally comprises amounts expended by original developer + negotiated premium which is NPV of expected future profits of new owner 3 conditions satisfied: identifiability of asset, future economic benefits and reliably measurable cost Value of IPR is either... Historical cost less amortisation or impairment losses Fair value less amortisation or impairment losses US GAAP FAS 142 Intangible assets acquired individually or in a group to be accounted for on acquisition Cost of developing, maintaining and restoring intangible assets not specifically identifiable to be recognized as revenue expenses when incurred Amortize over best estimate of RUL, not exceeding 20 years from date asset available for use If RUL is >20 years, apply IAS 36 (Impairment test) every year and explain why asset has life >20 years FAS 86 Self-developed sofware intended to be leased out Laws relating to IPR Patents Copyrights Trademarks Industrial Designs Treatment If Self-developed Recognized as asset if... 3 conditions satisfied: identifiability of asset, future economic benefits and reliably measurable cost Value of IPR If R&D project is infructuous, (ie, no IPR results) write off 100% If R&D leads to creation of IPR, (NPV of expected profit stream from sales attributable to IPR + costs of patent search and filing) taken as value
8 If Acquired Pronouncements in respective jurisdictions determines accounting and reporting Pronouncements generally deal with conditions for recognition of an intangible as an asset; and at what value to be recognized IP Valuation must follow doctrines of Conservatism Materiality Consistency
Business Combinations IFRS 3
CA Sandesh Mundra Business Combinations IFRS 3 For many men, the acquisition of wealth does not end their troubles, it only changes them. - Lucius Annaeus Seneca Lets get some of the basics correct.. We
More informationVALUATION CONSIDERATIONS AND METHODS FOR A PATENT VALUATION ANALYSIS
Insights Autumn 2009 54 Intellectual Property Valuation Insights VALUATION CONSIDERATIONS AND METHODS FOR A PATENT VALUATION ANALYSIS C. Ryan Stewart In recent years, the value of patents and other intellectual
More informationContract-Related Intangible
Income Tax Insights Valuation of Contract-Related Intangible Assets Robert F. Reilly, CPA The valuation of contract-related intangible assets is often an issue in matters related to income tax, gift tax,
More informationIntellectual Property Forensic Analysis Valuation Considerations
Forensic Analysis Insights Best Practices Intellectual Property Forensic Analysis Valuation Considerations Robert F. Reilly, CPA Valuation analysts are often asked to perform intellectual property (patents,
More informationIntangible Assets IAS 38, IAS 36, IFRS 3
Intangible Assets IAS 38, IAS 36, IFRS 3 Agenda 1. Introduction 2. Recognition 3. Measurement 4. Impairment of intangible assets (IAS 36) Basic concept Cash-Generating Units 5. Disclosures 2 1 Introduction
More informationWillamette Management Associates White Paper: INTELLECTUAL PROPERTY VALUATION CONSIDERATIONS
Willamette Management Associates White Paper: INTELLECTUAL PROPERTY VALUATION CONSIDERATIONS by Robert F. Reilly, CPA INTRODUCTION AND OVERVIEW There are numerous reasons why Willamette Management Associates
More informationFinancial Accounting Series
Financial Accounting Series NO. 221-C JUNE 2001 Statement of Financial Accounting Standards No. 142 Goodwill and Other Intangible Assets Financial Accounting Standards Board of the Financial Accounting
More informationUniversity of Economics, Prague. Non-current tangible and intangible assets (IAS 16 & IAS 38)
University of Economics, Prague Faculty of Finance and Accounting Department of Financial Accounting and Auditing Non-current tangible and intangible assets (IAS 16 & IAS 38) 1FU486 IFRS David Procházka
More informationNon-current Assets. Prof.(FH) Dr. Walter Egger
Non-current Assets Prof.(FH) Dr. Walter Egger IAS 38 Intangible Assets Intangible Asset Is an identifiable non-monetary asset without physical substance Identifiability Seperable (can be seperated, divided
More informationORIGINAL PRONOUNCEMENTS
Financial Accounting Standards Board ORIGINAL PRONOUNCEMENTS AS AMENDED Statement of Financial Accounting Standards No. 142 Goodwill and Other Intangible Assets Copyright 2010 by Financial Accounting Foundation.
More informationAccounting for Intangible Assets
Accounting for Intangible Assets 1 Examples: Goodwill- internally generated and acquired Trade mark and brand names- internally generated and acquired Patents Copyright Franchise Licenses Customer loyalty
More informationBusiness Combinations
Business Combinations Indian Accounting Standard (Ind AS) 103 Business Combinations Contents Paragraphs OBJECTIVE 1 SCOPE 2 IDENTIFYING A BUSINESS COMBINATION 3 THE ACQUISITION METHOD 4 53 Identifying
More informationIFRS Training. IAS 38 Intangible Assets. Professional Advisory Services
IFRS Training IAS 38 Intangible Assets Table of Contents Section 1 Overview 2 Introduction to Intangible Assets 3 Recognition and Initial Measurement 4 Internally Generated Intangible Assets 5 Measurement
More informationORIGINAL PRONOUNCEMENTS
Financial Accounting Standards Board ORIGINAL PRONOUNCEMENTS AS AMENDED Statement of Financial Accounting Standards No. 142 Goodwill and Other Intangible Assets Copyright 2008 by Financial Accounting Standards
More informationAccounting for Tangible Capital Assets
Accounting for Tangible Capital Assets Date Approved by Board: 2011.11.17 Resolution No.: 11-113 2016.05.19 16-048 Lead Role: CFO Replaces: N/A Last Review Date: N/A Next Review Date: 2019.05.19 Policy
More information7 Days Intensive Workshop on IFRS ICAI Tower, BKC, Mumbai. IAS 16 Property, Plant & Equipments
7 Days Intensive Workshop on IFRS ICAI Tower, BKC, Mumbai 01-July-14, Tuesday From To Details Faculty 10:00 AM 1:15 PM IAS 16 : Property, Plant & Equipments IAS 38 : Intangible Assets Ind AS 40:Investment
More informationCENTRAL GOVERNMENT ACCOUNTING STANDARDS
CENTRAL GOVERNMENT ACCOUNTING STANDARDS NOVEMBER 2016 STANDARD 4 Requirements STANDARD 5 INTANGIBLE ASSETS INTRODUCTION... 75 I. CENTRAL GOVERNMENT S SPECIALISED ASSETS... 75 I.1. The collection of sovereign
More informationDetailed competency map: Knowledge requirements. (AAT examination)
Detailed competency map: Knowledge requirements (AAT examination) Fields of competency The items listed are shown with an indicator of the minimum acceptable level of competency, based on a three-point
More information15 Differences between Unit Valuations, Summation Valuations, and Business Valuations
15 Differences between Unit Valuations, Summation Valuations, and Business Valuations Robert F. Reilly, CPA Willamette Management Associates 8600 W. Bryn Mawr Ave., Suite 950-N, Chicago, IL 60631 rfreilly@willamette.com
More informationEN Official Journal of the European Union L 320/373
29.11.2008 EN Official Journal of the European Union L 320/373 INTERNATIONAL FINANCIAL REPORTING STANDARD 3 Business combinations OBJECTIVE 1 The objective of this IFRS is to specify the financial reporting
More informationDistinctive Financial Reporting
Distinctive Financial Reporting FAC3702 Study unit 4 Intangible assets Overview Terminology Recognition & initial measurement of intangible assets Cost of internally generated intangible asset Recognition
More informationUNIT, SUMMATION, AND BUSINESS VALUE IN PROPERTY TAX VALUATIONS
UNIT, SUMMATION, AND BUSINESS VALUE IN PROPERTY TAX VALUATIONS ROBERT F. REILLY Although the differences between unit value, summation value, and business value are subtle, the distinction is important
More informationDefinitions. CPI is a lease in which base rent is adjusted based on changes in a consumer price index.
Annualized Rental Income is rental revenue under our leases on Operating Properties on a straight-line basis, which includes the effect of rent escalations and any tenant concessions, such as free rent,
More informationValuation of Taxpayer Intellectual Property Assets for Ad Valorem Taxation
Property Tax Valuation Insights Valuation of Taxpayer Intellectual Property Assets for Ad Valorem Taxation Robert F. Reilly, CPA Industrial and commercial taxpayers that are subject to state and local
More informationLeases. (a) the lease transfers ownership of the asset to the lessee by the end of the lease term.
Leases 1.1. Classification of leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease
More informationPurchase Price Allocations ASC 805 Business Combinations
Purchase Price Allocations Introduction Mergers, acquisitions, and other business transactions have numerous accounting and tax implications. Buyers generally identify and report the fair values of the
More informationIntangibles CHAPTER CHAPTER OBJECTIVES. After careful study of this chapter, you will be able to:
CHAPTER Intangibles CHAPTER OBJECTIVES After careful study of this chapter, you will be able to: 1. Explain the accounting alternatives for intangibles. 2. Record the amortization or impairment of intangibles.
More informationChapter 3 Business Valuation Report
CHAPTER 3: BUSINESS VALUATION REPORT Chapter 3 Business Valuation Report A1. Pre-IPO Valuation Need Company Restructuring and Financing It is not unusual that companies undergo series of restructuring
More informationAn intangible asset is an identifiable non-monetary asset without physical substance.
Technical Summary This extract has been prepared by IASC Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards.
More informationAnalytical Differences between Business Valuations, Unit Valuations, and Summation Valuations
Property Tax Valuation Insights Analytical Differences between Business Valuations, Unit Valuations, and Summation Valuations Robert F. Reilly, CPA Taxing authorities and property owners (and even some
More informationIntellectual Property Rights - Accounting aspects
Intellectual Property Rights - Accounting aspects Presented by: CA Vijay Mathur 10 August 2013 Agenda Intellectual Property Rights (IPR) - some definitions IPR accounting relevance and challenges Accounting
More informationCAS -16 COST ACCOUNTING STANDARD ON DEPRECIATION AND AMORTISATION
Cost Accounting Standards Board CAS -16 COST ACCOUNTING STANDARD ON DEPRECIATION AND AMORTISATION The following is the COST ACCOUNTING STANDARD 16 (CAS 16) issued by the Council of The Institute of Cost
More informationIAS 38 Intangible Assets
21/12/2010, Tuesday From To Details Faculty 2:15 PM 5:30 PM IAS 38 : Intangible Assets IAS 40 : Investment Property IFRS 5 : Non Current Assets Held for Sale and Discontinued Operations CA. Chintan Patel,
More informationBusiness Valuations in the Planned Giving Context
Business Valuations in the Planned Giving Context 38 th Annual Minnesota Planned Giving Conference November 4, 2014 Presented by: Richard C. Berning, CPA/ABV/CFF, CBA, CVA, ABAR, CMA Copyright 2014: Berning
More informationIntangible Assets. Contents. Accounting Standard (AS) 26
501 Accounting Standard (AS) 26 (issued 2002) Intangible Assets Contents OBJECTIVE SCOPE Paragraphs 1-5 DEFINITIONS 6-18 Intangible Assets 7-18 Identifiability 11-13 Control 14-17 Future Economic Benefits
More informationICAI VALUATION STANDARDS 2018
ICAI VALUATION STANDARDS 2018 Seminar on Valuation Standards and Rules at ICAI BKC C A B H A K T I S H A H 2 4 N O V 2 0 1 8 INTRODUCTION TO REGISTERED VALUER Section 247 of the Companies Act, 2013 ( Act
More informationWorkshop on IND AS Intangible assets WIRC of the ICAI April 23, 2016
Workshop on IND AS Intangible assets WIRC of the ICAI April 23, 2016 Contents Background and Scope Definitions Recognition & Measurement Amortization Disclosure requirements Differences with existing AS
More informationIFRS - 3. Business Combinations. By:
IFRS - 3 Business Combinations Objective 1. The purpose of this IFRS is to specify to disclose financial information by an entity when carrying out a business combination. In particular, specifies that
More informationIntangible Assets. Contents. Accounting Standard (AS) 26 (issued 2002)
Accounting Standard (AS) 26 (issued 2002) Intangible Assets Contents OBJECTIVE SCOPE Paragraphs 1-5 DEFINITIONS 6-18 Intangible Assets 7-18 Identifiability 11-13 Control 14-17 Future Economic Benefits
More informationEUROPEAN UNION ACCOUNTING RULE 7 PROPERTY, PLANT & EQUIPMENT
EUROPEAN UNION ACCOUNTING RULE 7 PROPERTY, PLANT & EQUIPMENT Page 2 of 10 I N D E X 1. Objective... 3 2. Scope... 3 3. Definitions... 3 4. Recognition... 4 4.1 General recognition principle... 4 4.2 Initial
More informationACCOUNTING FOR ACQUISITIONS RESULTING IN COMBINATIONS OF ENTITIES OR OPERATIONS
Institute of Chartered Accountants of New Zealand FINANCIAL REPORTING NO. 36 OCTOBER 2001 ACCOUNTING FOR ACQUISITIONS RESULTING IN COMBINATIONS OF ENTITIES OR OPERATIONS Issued by the Financial Reporting
More informationOverview of Intangible Asset Valuation
Overview of Intangible Asset Valuation Financing Reporting, Tax Compliance, and Litigation Support www.aicpa.org/fvs DISCLAIMER The views expressed by the presenter does not necessarily represent the views,
More informationWYOMING DEPARTMENT OF REVENUE CHAPTER 7 PROPERTY TAX VALUATION METHODOLOGY AND ASSESSMENT (DEPARTMENT ASSESSMENTS)
CHAPTER 7 PROPERTY TAX VALUATION METHODOLOGY AND ASSESSMENT (DEPARTMENT ASSESSMENTS) Section 1. Authority. These Rules are promulgated under the authority of W.S. 39-11-102(b). Section 2. Purpose of Rules.
More informationroots The Substance of the Standard Contents Changes to the Accounting for Goodwill for Private Companies
The Substance of the Standard MAYER HOFFMAN MCCANN P.C. AN INDEPENDENT CPA FIRM TM A publication of the Professional Standards Group February 2014 Changes to the Accounting for Goodwill for Private Companies
More informationLesson 6 International Accounting Lelio Bigogno, Stefano Santucci
Università degli studi di Pavia Facoltà di Economia a.a. 2014-2015 2015 Lesson 6 International Accounting Lelio Bigogno, Stefano Santucci 1 IAS/IFRS: Objective and definition of IAS38 2 The objective of
More informationInternational Accounting Standard 17 Leases. Objective. Scope. Definitions IAS 17
International Accounting Standard 17 Leases Objective 1 The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation
More informationChapter 9 - REPORTING AND ANALYZING LONG-LIVED ASSETS
Revised Summer 2018 Chapter 9 Review 1 Chapter 9 - REPORTING AND ANALYZING LONG-LIVED ASSETS LO 1: Explain the accounting for plant asset expenditures. Plant Assets (Also known as Property, Plant, and
More information(a) Assets arising from construction contracts (see Section 23 of FRS 102, Revenue); and
Impairment of assets 14.1 This section sets out the considerations for social landlords in assessing impairment of assets, which is dealt with in Section 27 of FRS 102, Impairment of Assets. 14.2 Social
More informationHow to Read a Real Estate Appraisal Report
How to Read a Real Estate Appraisal Report Much of the private, corporate and public wealth of the world consists of real estate. The magnitude of this fundamental resource creates a need for informed
More informationFinancial Accounting Standards Committee
Statement of Financial Accounting Standards No. 37 20 July 2006 Translated by Chi-Chun Liu, Professor (National Taiwan University) Financial Accounting Standards Committee -605- -606- Statement of Financial
More information4/10/2012. Long-Lived Assets and Depreciation. Overview of Long-lived Assets. Learning Objectives (LO) Learning Objectives (LO)
Learning Objectives (LO) CHAPTER Long-Lived Assets and Depreciation 8 After studying this chapter, you should be able to 1. Distinguish a company s expenses from expenditures that it should capitalize
More informationIAS 16 Property, Plant and Equipment. Uphold public interest
IAS 16 Property, Plant and Equipment Uphold public interest Background IAS 16 became operational in 1983 Major amendments have been made several times including 1998, 2003, 2008, 2012, 2013, 2014 The objective
More informationIFRS 3 Business Combinations
IFRS 3 Business Combinations 0 Objectives Define a business combination under IFRS 3 (Revised 2008) Describe the steps in applying the acquisition method Explain the recognition and measurement principles
More informationIn May 2014 the Board amended IAS 38 to clarify when the use of a revenue-based amortisation method is appropriate.
IAS 38 Intangible Assets In April 2001 the International Accounting Standards Board (Board) adopted IAS 38 Intangible Assets, which had originally been issued by the International Accounting Standards
More informationSSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES
SSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES (Issued October 1987; revised February 2000) The standards, which have been set in bold italic type, should be read in the context of the background
More informationProperty, Plant & Equipment Intangible Assets
Property, Plant & Equipment Intangible Assets October 17, 2015 Contents: 1. Property, Plant and Equipment (Ind AS 16) - Borrowing Costs (Ind AS 23) - Stripping Costs of a Surface Mine (Appendix B to Ind
More informationAnalysing lessee financial statements and Non-GAAP performance measures
February 2019 IFRS Foundation The Essentials Issue No. 5 Analysing lessee financial statements and Non-GAAP performance measures Introduction Investors and company managers generally view free cash flow
More informationBusiness Combinations
International Financial Reporting Standard 3 Business Combinations This version was issued in January 2008. Its effective date is 1 July 2009. It includes amendments resulting from IFRSs issued up to 31
More informationIASB Staff Paper March 2011
IASB Staff Paper March 2011 Effect of board redeliberations on Exposure Draft Leases About this staff paper This staff paper indicates how the proposals in the Exposure Draft Leases would change as a result
More informationInternational Accounting Standard 38 Intangible Assets. Objective. Scope
International Accounting Standard 38 Intangible Assets Objective 1 The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in
More information31 July 2014 Japan s Modified International Standards (JMIS): Accounting Standards Comprising IFRSs and the ASBJ Modifications
31 July 2014 Japan s Modified International Standards (JMIS): Accounting Standards Comprising IFRSs and the ASBJ Modifications ASBJ Modification Accounting Standard Exposure Draft No. 1 Accounting for
More informationAccounting Of Intangible Assets Indian as- 26
IOSR Journal of Business and Management (IOSR-JBM) e-issn: 2278-487X, p-issn: 2319-7668. Volume 16, Issue 2. Ver. II (Feb. 2014), PP 40-45 Accounting Of Intangible Assets Indian as- 26 Manpreet Sharma,
More informationIndian Accounting Standard (Ind AS) 38
Indian Accounting Standard (Ind AS) 38 Intangible Assets (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate
More informationHONG KONG SOCIETY OF ACCOUNTANTS. Financial Accounting Standards Committee. Urgent Issues & Interpretations Sub-Committee
HONG KONG SOCIETY OF ACCOUNTANTS Financial Accounting Standards Committee Urgent Issues & Interpretations Sub-Committee Interpretation 12 Business combinations - Subsequent adjustment of fair values and
More informationWEEK 9 Investment Property IAS 40
WEEK 9 Investment Property IAS 40 Learning Objectives Define the term investment property. Explain the recognition and measurement procedures in IAS 40 Discuss how to treat disposable of an asset Discuss
More informationL 320/252 EN Official Journal of the European Union
L 320/252 EN Official Journal of the European Union 29.11.2008 INTERNATIONAL ACCOUNTING STANDARD 38 Intangible assets OBJECTIVE 1 The objective of this standard is to prescribe the accounting treatment
More informationCC HOLDINGS GS V LLC INDEX TO FINANCIAL STATEMENTS. Consolidated Financial Statements Years Ended December 31, 2011, 2010 and 2009
INDEX TO FINANCIAL STATEMENTS Consolidated Financial Statements Years Ended December 31, 2011, 2010 and 2009 Report of PricewaterhouseCoopers LLP, Independent Auditors...................................
More informationIFRS Update Guy Thomas, CPA, CA
IFRS Update Guy Thomas, CPA, CA D&Co IFRS update Agenda 3 new standards under IFRS IFRS 9 Financial Instruments IFRS 15 Revenue from Contracts with Customers IFRS 16 Leases Agenda Some narrow scope amendments
More informationIntangible Assets (HKAS 38) 20 December Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005 Nelson 1
Intangible Assets (HKAS 38) 20 December 2005 Nelson Lam CFA FCCA FCPA(Practising) MBA MSc BBA CPA(US) ACA 2005 Nelson 1 Today s Agenda Simple but Comprehensive 1. Objective and Scope Contentious 2. Definition
More informationMs. Vaishali Mane Director, Transfer Pricing Services Grant Thornton India LLP
Function, Asset and Risk Analysis Mumbai Ms. Vaishali Mane Director, Transfer Pricing Services Grant Thornton India LLP 2012 Grant Thornton India LLP. All rights reserved. Tested Party Key Takeaways FAR
More informationLKAS 17 Sri Lanka Accounting Standard LKAS 17
Sri Lanka Accounting Standard LKAS 17 Leases CONTENTS SRI LANKA ACCOUNTING STANDARD LKAS 17 LEASES paragraphs OBJECTIVE 1 SCOPE 2 DEFINITIONS 4 CLASSIFICATION OF LEASES 7 LEASES IN THE FINANCIAL STATEMENTS
More informationTHE VALUATION OF INTELLECTUAL PROPERTY FOR FAMILY LAW PURPOSES
Insights Special Issue 2008 38 Intangible Asset Valuation Insights THE VALUATION OF INTELLECTUAL PROPERTY FOR FAMILY LAW PURPOSES Alan A. Schachter A marital estate may own an intellectual property directly
More informationIND AS 38 Intangible Assets
IND AS 38 Intangible Assets 1 What do you mean by Intangible Assets An intangible assets is an identifiable nonmonetary assets without physical substance held for use in the production or supply of goods
More informationCopyright 2009 The Learning House, Inc. Fixed and Intangible Assets Page 1 of 13
Copyright 2009 The Learning House, Inc. Fixed and Intangible Assets Page 1 of 13 Introduction This lesson focuses on the long-term assets used to operate a company. These assets can be grouped into fixed
More informationCONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS Dundee Real Estate Investment Trust Consolidated Balance Sheets (unaudited) June 30, December 31, (in thousands of dollars) Note 2004 2003 Assets Rental properties 3,4
More informationAAT Professional Diploma in Accounting
Qualification Number: R486 04 Qualification Technical Information Version 1.1 published 13 June 2016 AAT Professional Diploma in Accounting Qualification Technical Information Units in this qualification
More informationChapter 11. Learning Objectives. Non-current Assets. Horngren, Best, Fraser, Willett: Accounting 6e 2010 Pearson Australia
PowerPoint to accompany Chapter 11 Non-Current Assets: Property, Plant and Equipment, and Intangibles Learning Objectives 1. Measure the cost of a non-current asset 2. Account for depreciation 3. Select
More informationHong Kong Accounting Standard 16 Property, Plant and Equipment
Hong Kong Accounting Standard 16 Property, Plant and Equipment 1 Contents Hong Kong Accounting Standard 16 Property, Plant and Equipment paragraphs OBJECTIVE 1 SCOPE 2-5 DEFINITIONS 6 RECOGNITION 7-14
More informationGoodwill Valuation Considerations Involving Private Companies and Professional Practices
FINANCIAL VALUATION - Goodwill Valuation Goodwill Valuation Considerations Involving Private Companies and Professional Practices The valuation of either business (also called institutional) goodwill or
More informationFunctional and Comparability Analysis
Functional and Comparability Analysis February 16, 2013, Mumbai Grant Thornton India LLP Ms. Vaishali Mane Director Transfer Pricing Services Agenda Function, Assets and Risk Analysis Tested Party Concept
More informationPlant assets are resources that have
10-1 LEARNING OBJECTIVE 1 Explain the accounting for plant asset expenditures. Plant assets are resources that have physical substance (a definite size and shape), are used in the operations of a business,
More informationInternational Financial Reporting Standards (IFRS)
FACT SHEET February 2011 IAS 40 Investment Property (This fact sheet is based on the standard as at 1 January 2011.) Important note: This fact sheet is based on the requirements of the International Financial
More informationBoard Meeting Handout ACCOUNTING FOR CONTINGENCIES September 6, 2007
PURPOSE Board Meeting Handout ACCOUNTING FOR CONTINGENCIES September 6, 2007 At today s meeting, the Board will discuss whether to add to its technical agenda a project considering whether to revise the
More informationTest Code F1 Branch (MULTIPLE) (Date : )
FINAL CA May 2018 ACCOUNTING STANDARDS (PART 1) Test Code F1 Branch (MULTIPLE) (Date : 03.12.2017) (50 Marks) compulsory. Note: All questions are Question 1 (5 marks) As per para 10 of AS 2 Valuation of
More informationHKAS 40 Revised January 2017April Hong Kong Accounting Standard 40. Investment Property
HKAS 40 Revised January 2017April 2017 Hong Kong Accounting Standard 40 Investment Property HKAS 40 COPYRIGHT Copyright 2017 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial
More informationFinancial Accounting. Intangible Assets
Financial Accounting Intangible Assets Disclaimer The online video lectures and related study material (consisting of Powerpoint slides, summary modules, integrated question banks and other academic material)
More informationSOLUTIONS. Learning Goal 28
S1 Learning Goal 28 Multiple Choice 1. b 2. a 3. c 4. b However, the double-declining-balance method calculates the depreciation expense on the full asset cost until the final year of use. 5. d Total appraised
More informationInternational Financial Reporting Standards (IFRS)
FACT SHEET September 2011 IAS 38 Intangible Assets (This fact sheet is based on the standard as at 1 January 2011.) Important note: This fact sheet is based on the requirements of the International Financial
More informationWeek11, Chap 8 Accounting 1A, Financial Accounting
Week11, Chap 8 Accounting 1A, Financial Accounting Reporting and Interpreting Property, Plant, and Equipment;Natural Resources; and Intangibles Instructor: Michael Booth Understanding The Business Insufficient
More informationANNUAL REPORT 2017 Lake Country Co-operative Association Limited
ANNUAL REPORT Management's Responsibility To the Members of Lake Country Co-operative Association Limited: Management is responsible for the preparation and presentation of the accompanying financial statements,
More informationSri Lanka Accounting Standard LKAS 38. Intangible Assets
Sri Lanka Accounting Standard LKAS 38 Intangible Assets CONTENTS SRI LANKA ACCOUNTING STANDARD LKAS 38 INTANGIBLE ASSETS paragraphs OBJECTIVE 1 SCOPE 2 DEFINITIONS 8 Intangible assets 9 Identifiability
More informationCPE regulations require online participants to take part in online questions
KPMG s CFO Financial Forum Webcast FASB/IASB Revised Lease Accounting Exposure Drafts A Detailed Look Part III: Lessor Accounting June 25, 2013 Administrative CPE regulations require online participants
More informationReal-Estate BCBA. Board Certification in Business (BCBA) Valuation. Download Full Version :
Real-Estate BCBA Board Certification in Business (BCBA) Valuation Download Full Version : http://killexams.com/pass4sure/exam-detail/bcba QUESTION: 237 Which of the following is NOT a common category of
More informationPreface Who Should Read This Book 3 Organization and Content 4 Acknowledgments 5 Contacting the Author 5 About the Author 6
Preface.................................................................... 3 Who Should Read This Book 3 Organization and Content 4 Acknowledgments 5 Contacting the Author 5 About the Author 6...........................................................
More informationCHAPTER 6 - Accounting for Long-Term Operational Assets
CHAPTER 6 - Accounting for Long-Term Operational Assets ANSWERS TO QUESTIONS 1. Long-term operational assets are those assets that are used by a business to generate revenue. In contrast, investments are
More informationSRI LANKA ACCOUNTING STANDARD
(REVISED 2005) SRI LANKA ACCOUNTING STANDARD PROPERTY, PLANT & EQUIPMENT THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA (REVISED 2005) SRI LANKA ACCOUNTING STANDARD PROPERTY, PLANT & EQUIPMENT The
More informationThe Financial Accounting Standards Board
V A L U A T I O N How the New Leases Standard May Impact Business Valuations By Judith H. O Dell, CPA, CVA The Financial Accounting Standards Board issued the 485 page Leases Standard (Topic 842) in February,
More informationTHE ART OF BUSINESS VALUATION
BUSINESS VALUATIONS GROWING THE ART OF BUSINESS VALUATION Douglas A. Michel, CPA/ABV, CVA & Alex E. Kummer, CPA, CVA, Clark Schaefer Hackett THE VALUE OF YOUR BUSINESS Steve Lumley, LGI CFO BUY SELL AGREEMENTS
More informationChapter 8, Part II: Intangible Assets
Chapter 8, Part II: Intangible Assets Characteristics Recognition, Valuation Purchased / Internally-created intangibles Patents, copyrights, trademarks Goodwill Research and development costs 1 Characteristics
More information17 July International Accounting Standards Board 30 Cannon Street London EC4M 6XH United Kingdom. Dear Sir/Madam
Organismo Italiano di Contabilità OIC (The Italian Standard Setter) Italy, 00187 Roma, Via Poli 29 Tel. 0039/06/6976681 fax 0039/06/69766830 e-mail: presidenza@fondazioneoic.it 17 July 2014 International
More information